Micron Technology, Inc. (MU) stock is expected to reach $20 in near term
Market analysts deem Samsung responsible for the deteriorated performance of Micron Technology, Inc. (NASDAQ:MU) and other companies in the sector. Samsung, due to its size, has managed to pressurize competitors in terms of production costs. Moreover, Samsung has also reduced the average selling price of DRAM which has squeezed the margins of other companies operational in the sector along with Micron Technology.
Micron Technology’s performance is getting weaker due to its direct link to DRAM prices, which has already affected the company’s performance in last quarter, leading to reported net loss. Moreover, there have been headwinds in the DRAM market already due to other factors such as softness in PC demand and weakness in mobile growth. However, market analysts believe that overall margin squeeze in the profitability of DRAM market will not sustain for long.
2016 hasn’t been generous for Micron Technology as the stock has tumbled around 23.8% year-to-date and there are no visible instances which suggest that it will rally anytime soon. Although the year has been really bitter for the overall stock market but as time is passing by, markets are recovering; Dow Jones is again trading in green with slight increase of 0.53% YTD whereas S&P 500 is only down by 0.12% YTD.
Micron Technology stock has a current price of $10.77 which is up 0.47% in terms of daily trading. The current stock price is near its 52-week low range $9.31-29.78. However, Wall Street analysts project that Micron Technology stock will reach $13.38 in upcoming 52-weeks. The company has a market capitalization of $11.42 billion with a total float of 1.04 billion shares. Micron Technology stock has an average daily trading volume of 23.12 million shares.
The most bullish analyst on the street sees Micron Technology stock reaching $20 in the near term, which suggests an 87% growth potential over the current stock price. Conversely, the most bearish analyst has a prediction that the stock will drop to $8 in near term. These stock price suggestions are according to Thomson Reuters’ poll of 27 analysts and may differ from Zacks Investment Research data